ASK Investment Managers: Company Overview
ASK Investment Managers is the flagship company of the ASK Asset and Wealth Management Group, focusing on pure discretionary listed equity management. Their time-tested investment philosophy forms the foundation of capital preservation and growth-focused portfolios. As pioneers in the industry, they were among the first to obtain a Portfolio Management Services license in India.
Notable for its many industry-first initiatives, ASK was the first Portfolio Management Company to establish operations in GIFT City for overseas investors and launched India’s first Alternative Investment Fund (AIF) with digital client onboarding. They exclusively invest in listed Indian equities for their clientele through segregated accounts and commingled funds.
| Company Name | Ask Investment Managers Private Limited |
| Company Type | Unlisted Public Company (Buy Unlisted Shares) |
| Industry | Financial Services |
| Founded | 2004 |
| Registered Address | Level-16, Office Floor-9, Birla Aurora, Dr Annie Besant Road, Worli, Mumbai, Maharashtra 400030 |
Product Portfolio:
- Portfolio Management Services (PMS): They offer a comprehensive range of customized portfolios tailored to meet individual financial goals. With a focus on capital preservation and growth, their services ensure a personalized investment journey that aligns with unique risk appetite and objectives.
- Alternate Investment Funds (AIF): Alternate Investment Funds (AIFs) provide innovative and specialized investment opportunities beyond traditional avenues. AIFs are designed to capitalize on unique market insights and strategic opportunities, offering dynamic wealth creation solutions for sophisticated investors seeking diversified and high-potential returns.
Industry Overview
In recent times, India has witnessed a huge boom in the equity market. The rise in FII interest is indicating India’s rise as the most attractive country among emerging market economies. As a result, India’s asset management industry is witnessing constant growth in the AUM.
Despite the slowdown in the global economy due to COVID-19, geopolitical concern, and war in Europe and the Middle East, the Indian mutual fund industry has shown incredible resilience and growth.
The market cap of India is roughly $5 trillion, with mutual funds managing about 15% of that. In contrast, in the US mutual funds manage almost 30% of the total equity assets. This gap is even wider in the fixed-income space.
In the last 10 years, the Indian mutual fund industry has grown six times from Rs. 9.75 trillion in June 2014 to Rs. 61.6 trillion in June 2024.
Management
Mr. Asit Koticha (Chief Investor & Promoter)
Mr. Asit Koticha has over three decades of experience in the Indian capital market and is the promoter of ASK Financials. He has featured in CNBC TV18’s ‘Wizards of Dalal Street’. Over the years the group under Mr. Asit’s mentorship has developed independent and focused expertise in the areas of Equity Research and Asset Management (both Equities and Real Estate). Mr. Koticha is also a promoter and investor in the luxury French spa and salon chain – Jean-Claude Biguine with over 21 locations across Mumbai, Bangalore & Pune.
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Sameer Koticha (Founder & Chairman)
Mr. Sameer Koticha is a Co-Founder and serves as Chairman at ASK Asset & Wealth Management. He co-founded and served as Chairman at ASK Group (Acquired 1994). He strategically drives the ASK group’s vision, philosophy, and values. He mentors the ASK Group in the areas of Corporate Governance and Best Practices. He has been instrumental in shaping the ASK Group into a leading Wealth Management entity. He is an Angel Investor.
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Bharat Shah (Executive Director, ASK Group)
Mr. Bharat Shah, is an Executive Director at ASK Group and has been associated with them since 2008. He holds a bachelor’s degree in commerce from the University of Bombay and a post-graduate diploma in management from the Indian Institute of Management, Calcutta. He is also a member of the Institute of Chartered Accountants of India and a member of the Institute of Cost and Works Accountants of India. Having 25 years of experience in the field of investment management, he has a considerable understanding of global businesses and stock picking is his forte. His investment philosophy emphasizes buying quality businesses enjoying superior growth but at reasonable valuations. In 2013, he authored a book entitled “Of Long-Term Value & Wealth Creation from Equity Investing: Observation, Ideas and Reflection”.
The Group:
Established in 1983, ASK Asset & Wealth Management Group is committed to delivering exceptional returns through wealth management and advisory services. The portfolio comprises investments across various sectors, including listed equities, alternative investments, real estate, private equity, hedge funds etc.
Key Statistics:
- Assets Under Management: ₹82,000 Crs+
- Clients: 20,000+
- Expertise: 40+ years
| Group Companies | Description |
| ASK Property Fund | Manages and advises real estate dedicated funds with a focus on strategic investments in India. |
| ASK Capital | Offers specialized solutions in public equity, real estate, and hedge funds with rigorous research and disciplined risk management. |
| ASK Private Wealth | Provides comprehensive financial planning to manage and grow client wealth, ensuring long-term financial security and legacy planning. |
| ASK Hedge Solutions | Focuses on ‘Risk-Adjusted Returns’ strategies for sophisticated investors, aiming for superior returns in volatile markets. |
| ASK Finance (NBFC Arm) | Provides flexible debt financing solutions, specializing in credit and warehousing transactions. Offerings include Loan Against Securities, Construction Finance, Private Credit. |
Financial Highlights
| Particulars (₹ in Cr.) | 31st March, 2024 | 31st March, 2023 | % increase |
| Revenue | 1062.51 | 936.07 | 13.51% |
| EBITDA | 470.02 | 420.62 | 11.74% |
| PAT | 402.59 | 335.85 | 19.87% |
| EPS | 0.03 | 0.02 | 19.87% |
| PAT Margins | 38% | 35% | 8.26% |
Valuation
| Valuations (₹ in Cr.) | 31st March, 2024 |
| Share Price | 1,535 |
| Outstanding shares | 9,036 |
| MCAP | 13,871 |
| P/E Ratio | 34.4 |
| P/S Ratio | 12.37 |
| P/B Ratio | 8.92 |
| Book value per share | 168 |
Peer Comparison:
(as of 31st March 24)
| Particulars | ASK IM Ltd. | Nuvama Wealth | Anand Rathi |
| Revenue | 1062 Crs. | 3156 Crs. | 752Crs. |
| PAT | 403 Crs. | 625 Crs. | 226 Crs. |
| PAT Margins | 38% | 19.8% | 30% |
| AUM (as on Sep 24) | 34,000 Crs. | 10,000 Crs | 59,351 Crs. |
| Current Market Price (as on 05/11/24) | 1535 | 7046 | 4044 |
| Market Cap | 13,870Crs. | 25,254 Crs. | 16,929Crs. |
| P/E Multiple | 45X | 30X | 64X |
IPO Plans
In 2018, ASK Investments, a well-established asset management and wealth advisory firm in India, announced plans for an initial public offering (IPO) aimed at raising approximately ₹2,000 crore (around $270 million at the time). The IPO was intended to support ASK’s expansion and diversification initiatives, including enhancing its investment management infrastructure and broadening its client reach across India and abroad.
Despite ASK’s solid market position and extensive client base, the IPO was ultimately withdrawn. Key factors contributing to the decision included challenging market conditions, valuation concerns, and lukewarm investor interest amidst broader market volatility. ASK had been hoping to attract a substantial valuation to capitalize on growth potential, but the uncertain market environment deterred investors. This outcome underscored the influence of timing, market sentiment, and valuation expectations on IPO success.
Recent News
(Oct-24)
ASK Investment Managers, once a portfolio manager known for garnering loads of money from investors, is now facing challenges to stop investors from walking away and has lost more than 3,700 clients since the start of the current calendar year.
Since January, ASK’s portfolio management services (PMS) have lost 3,751 clients, as per data from the Securities and Exchange Board of India (SEBI). This is the highest client outflow among leading portfolio managers during the same period, as per data from PMS Bazaar. Currently the PMS arm of ASK Investment Managers has 12,923 clients across strategies.
Distributors are of the view that while Bharat Shah, the whole-time director of ASK Investment Managers, has long been known for his commitment to quality stocks, this focus has led to underperformance in various strategies of ASK Investment Managers, making clients re-think their loyalty.
Even the firm’s AUM has come down to Rs 23,952 crore in September from Rs 25,851 crore in January.
(Feb-22)
The Blackstone Group has completed the acquisition of a 71% stake in ASK Investment Managers, with private equity firm Advent International and cofounder Asit Koticha exiting India’s third-largest asset and wealth management company by selling their 49% and 11% stakes, respectively.
SWOT Analysis
Strengths
- Established Reputation: ASK Investment Managers has a long-standing presence in the investment management industry, known for its commitment to quality stock selection and comprehensive portfolio management services.
- Diverse Portfolio Management Services: The company offers a range of portfolio management services (PMS) catering to different client needs, including equity, fixed income, and alternative investments.
- Experienced Leadership: Led by experienced professionals, including whole-time director Bharat Shah, who is recognized for his deep understanding of the market and investment strategies.
- Strong Client Relationships: The firm has built long-term relationships with many clients, enhancing customer loyalty and trust.
- Adherence to Regulatory Standards: Being compliant with SEBI regulations reinforces the firm’s credibility and operational integrity.
Weaknesses
- Recent Client Outflow: The loss of over 3,700 clients in the current calendar year indicates challenges in retaining investor confidence and loyalty.
- Underperformance in Returns: The firm’s schemes have underperformed compared to industry averages, with annualized returns significantly lower than the benchmark, which could deter potential clients.
- Declining Assets Under Management (AUM): AUM has decreased from Rs 25,851 crore to Rs 23,952 crore, which can impact operational revenue and growth potential.
- Limited Brand Recognition: Compared to larger firms in the industry, ASK may have less brand recognition, making it difficult to attract new clients.
- Focus on Quality: While the focus on quality stocks is a strength, it may also limit short-term gains, making it challenging in a market environment that favors quicker returns.
Opportunities
- Market Recovery Potential: There is potential for market recovery, which could enhance performance and attract new investments to the firm.
- Expansion of Services: By diversifying services, including ESG (Environmental, Social, and Governance) investments, ASK can appeal to a broader client base.
- Technological Advancements: Investing in technology and digital platforms can improve client engagement, enhance reporting, and streamline operations.
- Increased Financial Literacy: As more investors seek professional financial management, ASK can position itself as a thought leader in investment education and advisory.
- Strategic Partnerships: Forming partnerships with financial advisors and wealth management firms can help expand ASK’s reach and client acquisition.
Threats
- Intense Competition: The portfolio management sector is highly competitive, with many firms offering similar services, which could lead to pricing pressure and reduced margins.
- Market Volatility: Economic downturns and market fluctuations can impact investment returns, leading to client dissatisfaction and potential outflows.
- Changing Regulatory Environment: New regulations could impose additional compliance costs or limit operational flexibility.
- Investor Sentiment: Negative sentiment in the market or unfavourable economic conditions can result in reduced investor confidence, affecting client retention.
- Technological Disruptions: The rise of fintech and robo-advisors could threaten traditional investment management models, as investors increasingly turn to cost-effective, technology-driven solutions.
Ask Investment Managers unlisted shares are currently trading ₹1535, CLICK HERE to Invest.
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